This Week In Petroleum {Gasoline vs Diesel Pricing}

Energy Information Administration ^ | March 26, 2008 | EIA

[thackney]

How is it that the 85,000 service stations AAA surveys daily record diesel prices up?

[thackney]

Any diesel folks seeing this kind of drop in price?

[nascarnation]

I’m not an expert at all but I’ll theorize that those are times when fuel blends are changed for the season and the refinery has to take a “time out”

[commonguymd]

I own stations. I see prices every day. I am giving you facts from raac purchase prices which I am attuned to every day. The price of diesel has dropped 37 cents since last monday and the street price has dropped at raac dealers including myself 40 cents.

Now, if you understand the industry a bit, you will understand that many station groups buy futures and those futures might have been bought at the peak which according to my records was late into the week of 3-9 and into the following week. The speculation might have been bad timing.

Prices are dropping every day and will drop again tonight it appears. How that will translate to the pump is where station owners and groups see price surveys leading them.

I am glad you are interested to look at information. I am giving you first hand information that I find curious and you can take it or leave it at your leisure. Where it leads the next few weeks will continue to further my personal curiosity since truckers are starting to stand up with threats of a strike.

[commonguymd]

P Diesel $3.1010 $0.1810 $0.2440 $3.5260 3/25/2008 18:00 3/26/2008 18:00 -0.0324

Last night above.

P Diesel $3.4653 $0.1810 $0.2440 $3.8903 3/14/2008 18:00 3/17/2008 18:00 0.0502

Last monday above.

[commonguymd]

BTW the prices are cost including tax and not including delivery - fyi.

[Red Badger]

I haven’t kept up with the local price for diesel. I’ll haveta check the pumps at the corner store.......

[pallis]

I’ll be glad when that drop hits stations in my area.

[thackney]

I appreciate the information. I cannot find any retail pricing information that relates to it.

Is raac pricing available online without a subscription to a service?

Does raac pricing follow the spot market? I see a lot of movement in that market?

Low-Sulfur No. 2 Diesel Fuel
New York Harbor
http://tonto.eia.doe.gov/dnav/pet/hist/rdlnyhd.htm

[woofie]

I would love to know what gas prices would be if adjusted for inflation since the 1960’s....I think that would help put “high” prices in perspective

[thackney]

[CIBvet]

bookmark

[commonguymd]

As far as I know you must have license and dealer contract to get raac pricing albeit it is readily available -— and it is regional and locale specific as you know. Trends are trends though and the same trending would be nationwide. raac pricing is basically what NY determines in the stock market and is the true terminal cost. Now, of course I could buy a million gallons at todays price in leiu of shipment within reasonable time but I could get caught with my shorts down if the price continues to drop off significantly. Of course if prices go back up I am in good position. My read on this drastic dropping going on is that prices will continue to tumble.

You will see it at the pumps where you are at soon.

[woofie]

Wow! THANKS!!!!!

[thackney]

Thanks for the information. I usually don't watch the spot market and had not seen this amount of movement.

After seeing this, I searched it more at:

Petroleum Spot Prices
http://tonto.eia.doe.gov/dnav/pet/pet_pri_spt_s1_d.htm

Gulf Coast and Los Angeles Spot Diesel prices show similar movement.

Also Kerosene and Heating Oil Spot show the same.

Gasoline Spot has not moved that much but then it didn't run up earlier this month like the other did.

The futures markets didn't move that much. Neither did stocks.

[thackney]

The graphic at:
http://www.energy.ca.gov/gasoline/statistics/gasoline_cpi_adjusted.html

is a little clearer with more information. But it is a little large for posting. Click the link at the top.

I couldn’t find one in 2008 dollars.

[commonguymd]

So the curiosity I have is why the sudden movement down. Not complaining of course because it is a cash flow plus, but after the threat of a trucker’s strike all of a sudden the movement. Maybe coincidence.

[thackney]

Why was there nearly a 10% movement up earlier this month?

It seems like a correction at this time but I don’t know where it came from. The speculators in futures markets didn’t cause those to move this much.

[commonguymd]

I will find out more by next week this time. I haven't seen this type of downward movement so quick in a long time. Clearly, diesel is not trending with regular grades as they are running about 2 cents lower from last Monday as comparison which is statically insignificant to the consumer or dealer in pricing.

[commonguymd]

Regular $2.7829 $0.1810 $0.1840 $3.1479 3/25/2008 18:00 3/26/2008 18:00 0

Today

Regular $2.7908 $0.1810 $0.1840 $3.1558 3/14/2008 18:00 3/17/2008 18:00 0.0287

Last Monday